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3.0 The foundation theories

While the preceding timeline illustrates most of the groundbreaking theories and marketing milestones (Rafiq et al 1995) in the development of modern marketing theory the subsequent section illustrates how all the theories, fundamentally, are the built on the foundation of Borden’s (1964) twelve point framework and that, while many of these theories appear to be different, they all contain the basic principles as the twelve point framework:

The four P’s

It is universally accepted that the four P’s model was derived directly from Borden’s (1964) twelve point framework (Rafiq et al 1995). The four P’s successfully condensed the framework making a more memorable academic model which did not omit as much of the twelve point framework as many people assume due to the inclusion of the sub-mixes [which are not as well known outside of the marketing world] detailed in section 1.1. The price and promotion aspects of the four P’s are lifted directly from Borden’s (1964) framework and the product and place aspects are attempts to condense aspects of the twelve point framework using the sub-mixes. McCarthy (1964) included packaging and brand directly within the product sub-mix of the four P’s model, both of which were lifted directly from the twelve point framework.

Ideas such as appearance and quality that appeared in the four P’s can be linked back to items on the twelve point framework such as brand [which often affects people perception of quality] and packaging [the packaging will directly affect the appearance of the goods].

The place aspect of the four P’s is, looking at the two models under the current market climate, a step backwards. This is because “place” has now been replaced by “making products available” (Smith et al 2002) due to the influence of ecommerce and the marketspace (Rayport et al 1994). The Internet is viewed as a “channel of distribution”, a phrases coined by Borden (1964) rather than a place (McCarthy 1964) in which trade takes place (Chaffey et al 2000).

Each of the five P marketing mix variations

Evidently each of the five P’s has evolved from the four P’s. With the knowledge of the origin of the four P’s this, in itself, shows that each of these theories can be linked back to Borden’s twelve point framework. Furthermore several of the five P theories [the ones shown below] are nothing more than the original four P’s supplemented with another area [or adaptation of an area] from Borden’s twelve point framework as is shown below:

Packaging, as suggested by Nickel et al (1976) was originally point eight in Borden’s (1964) twelve point framework

The addition of public relations by Mindak et al (1981) and also the variant suggested by Kotler (1986) [as first explored in section 1.2] were both attempts to promote a “promotion” sub-mix to the forefront of the theory. While Borden’s (1964) twelve point framework does not have a specific public relations heading it would be difficult to argue that the model does not offer any consideration to public relations. Any good promotional campaign within an adequately sized organisation would, by nature of common sense, incorporate some degree of public relations. It is also important to remember that treating everyone individually [personalization] is a good public relations technique. Borden included personal selling as point five within the twelve point framework. The paper, Personal Selling (2003) states that public relations and personal selling go hand in hand as sales people treating people as individuals are by the nature of what they are doing often performing public relations activities.

To realise the true value of Borden’s twelve point framework as a generic marketing model it should be applied to the current economic situation and this sometimes means looking beyond the surface of the framework.

The seven P’s

As with the different five P variations it is universally accepted that this theory stemmed from the four P’s theory (Booms et al 1981; Rafiq et al 1995) and is an attempt to build upon it to make the traditional theory more applicable to the service industry. In this knowledge we can see, as with the preceding theories, which the seven P’s (Booms et al 1981) have evolved from the twelve point framework. As with packaging (Nickel et al 1976) and public relations (Mindak et al 1981; Kotler 1986) the additional benefits brought by the extra three P’s were present within Borden’s (1964) twelve point framework if it is applied to the current economic situation.

The additional P’s incorporated into the seven P’s theory were explained in section 1.3, they will now be analysed alongside the twelve point framework.

The concept of people is unquestionably the most difficult to link back to the twelve point framework, however, this is because Booms et al (1981) argues that every single person within an organisation has a part to play in the creation of its image. The concept of the idea is a good one, however, it does not highlight the fact that some people within an organisation will have more influence than others with regard to influencing the outsides worlds opinion of the organisation.

People who are not actively playing visible roles within an organisation cannot be viewed as having the same degree of influence as people at the forefront of it who deal with the public on a day-to-day basis. This means that primarily the people who will be the ambassadors for an organisation are sales people and to a lesser extent the people who deal with after sales service. As has already been highlighted Borden’s twelve point framework includes personal selling [with a positive interaction between sales person and customer ensuring that the overall process is satisfying and enjoyable] and also servicing.

The inclusion of processes within the seven P’s is an attempt to highlight that a service is often more transparent than a product, therefore people can often see exactly what they are paying for. This is a concern to many service based organisation as they want to appear to be giving clients value for money and the way to do this is portray an efficient service. This idea revolves around the designing of the service or its planning. The first point on Borden’s twelve point framework is “product planning”; should this be applied to a service it would become “service planning” which would achieve the same goal as the processes aspect of the seven P’s.

Physical evidence is the aspect of the seven P’s theory that fits into the most categories within the twelve point framework. The accompanying of a service with physical evidence to either add value or instil confidence into the consumer [as examined in section 1.3] is part of planning the overall service [product planning, point one on the twelve point framework]. Physical evidence used to add value, for example uniforms and name-tags within an office creating a more professional image is also a part of creating a company image or as Borden chose to call it “brand” [point three was branding].

CRM

Moving forwards into the nineties the next theory on the marketing timeline is CRM. Throughout the nineties and up to the modern day CRM is seen as an advanced but powerful marketing technique (Xu et al 2002) as explained in section 2.2. While CRM is quite a complex technique to implement perfectly it is still one that can be linked back to the original twelve point framework and requires aspects of it to support it.

The main objective of CRM is to enhance targeting of marketing messages while actively building relationships with individual customers. CRM is not a generic marketing framework; it is a tool that can be used alongside such a framework to enhance its effectiveness [the most effective generic framework, as we have now seen, Borden’s twelve point framework]. The idea of personalisation and targeting is, however, not a new idea. As highlighted several times Borden’s twelve point framework promoted personal selling which, when the Marketing Myopia article (Levitt 1960) is considered would also lead us to realise also means personal marketing. CRM is really just an advancement of the degree of personalisation put forward by Borden to keep up with technology as it becomes available.

Staying in the nineties and moving onto the final marketing theory on the marketing timeline each aspect of the six I’s model [also known as the electronic marketing mix (Smith et al 2002)] will be examined and it will be shown how most of these, individually, can be linked back to the Borden framework.

The six I’s

As explained in Appendix A Interactivity is an important aspect of the electronic marketing mix. The main rationale for its significance is that it facilitates the two way flow of information [two way communication] therefore is better at grasping a viewers attention.

When Borden (1964) developed the twelve point framework he intended it to be applied to the current marketing environment. Just because at the time of the frameworks conception a technology was unavailable does not mean that technology should never be considered when applying the model. For example if a new medium was developed in ten years time, when an organisation used Borden’s framework it should also be applied to that medium. If the Internet or any other fairly modern medium is used for either advertising [point six] or promotion [point seven] then they are being used in a way suggested by Borden. Employing the interactive features of these mediums is just current best practice when using them.

The second point on the I’s model is intelligence. Market intelligence is fundamentally market research. As explained in Appendix A, this forms part of the first point on Borden’s (1964) model. All of the research prior to marketing a new product or service is product planning.

The third I within the model is individualisation which is in fact customisation through CRM, which was explored prior to this section.

The fourth I is integration, the using of different media to support one another throughout a campaign. This is not a new idea at all and is in fact merely good advertising practice, advertising being point six within the twelve point framework.

The fifth and sixth I’s, which can be grouped together as both industry restructuring and interdependence of location, are mainly concerned with the product distribution aspect of the twelve point framework. While in 1964 Borden did not mention the Internet in his theory [for obvious reasons!] he did intend his model to be applicable within the current economy/marketplace. It is for this reason that the “channels of distribution” aspect of his model, today, includes the restructuring of a distribution path via the Internet or in fact any other route that may be developed in the future. These I’s also can also affect internal processes and organisational structure in light of the way in which they can change industries as a whole, for more information on this process see Chaffey et al (2000) pages 27-28.

The following sections of this report will attempt to test whether the fundamental principles of marketing, originally coined in Borden’s (1964) twelve point framework are still viable today in the aviation training industry.

Of all the preceding theories examined the six I’s is the one that seems most useful within the modern marketing world and also the furthest from the twelve point framework, however, it is not suitable as a stand along generic marketing model. Chaffey et al (2000) suggests it would be extreme value when used to complement an alternative [more generic] marketing mix.


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